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MIRA INFORM REPORT
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Report No. : |
495918 |
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Report Date : |
08.03.2018 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HONGCHUANG ALUMINIUM INDUSTRY HOLDING COMPANY LIMITED |
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Registered Office : |
No. 1568 Binbo Street, Boxing County,
Binzhou, Shandong Province 256500 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
11.08.2000 |
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Unified
Social Credit Code : |
91371600724984340K |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business scope includes manufacturing
and selling high precision aluminum sheet and foil; international trade |
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No. of Employees : |
305 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s, China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
COMPANY
NAME and ADDRESS
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COMPANY NAME |
Shandong Hongchuang Aluminium Industry Holding Company Limited |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 1568 Binbo Street, Boxing County,
Binzhou, Shandong Province 256500 PR China |
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TEL. NO. |
86 (0) 543-2388578 |
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FAX NO. |
86 (0) 543-2161727 |
EXECUTIVE
SUMMARY
Date of Registration :
august 11, 2000
Unified Social Credit Code : 91371600724984340K
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE :
zhao qianfang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 926,400,000
staff :
305
BUSINESS CATEGORY :
manufacturing & trading
REVENUE :
CNY 1,077,080,000 (CONSOLIDATED, JAN. 1, 2017 TO SEP. 30,
2017)
EQUITIES :
CNY 1,243,148,000 (CONSOLIDATED, AS OF SEP. 30, 2017)
WEBSITE : www.hongchuangholding.com
E-MAIL : stock@hongchuangholding.com
PAYMENT :
REGULAR
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION :
fairly good
Adopted
abbreviations (as follows)
SC - Subject Company (the
company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This
section aims at indicating the relative positions of SC in respect of its operational
trend & general reputation
Operational
Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly
Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not
known Not
yet be determined
Not
yet be determined
LEGAL
STATUS & HISTORY
SC
was established as shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under Unified Social Credit Code: 91371600724984340K.
SC’s Import and Export Enterprise Code:
3700724984340
SC’s registered capital: CNY
926,400,000
SC’s paid-in capital: CNY 926,400,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-7-18 |
Registered Capital |
CNY 463,200,000 |
CNY 926,400,000 |
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2016-8-5 |
Legal Representative |
Yu Rongqiang |
Wang Jingkun |
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2017-5-26 |
Legal Representative |
Wang Jingkun |
Zhao Qianfang |
|
-- |
Registration No./ Unified Social Credit Code |
371600228011118 |
91371600724984340K |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of September 30, 2017) |
% of Shareholding |
|
Shandong Hongqiao New Materials Co., Ltd. |
28.18 |
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Yu Rongqiang |
7.36 |
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ICBC- South Big Data 100 Index Securities Investment Fund |
0.78 |
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Beijing Zhongbang Nuo'er Technology Co., Ltd. |
0.48 |
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Zhu Yehua |
0.43 |
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Huang Wenhua |
0.41 |
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Lu Chenglian |
0.34 |
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Zhang Chengbao |
0.32 |
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Huang Ye |
0.27 |
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Jiang Fang |
0.27 |
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Other Shareholders |
61.16 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhao Qianfang |
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General Manager |
Yang Guangchang |
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Deputy General Manager |
Liu Xinghai |
|
Xiao Xiao |
RECENT
DEVELOPMENT
SC
is a listed company in Shenzhen Stock Exchange Market with the code of 002379.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2017)
Shandong
Hongqiao New Materials Co., Ltd. 28.18
Yu
Rongqiang 7.36
ICBC-
South Big Data 100 Index Securities Investment Fund 0.78
Beijing
Zhongbang Nuo'er Technology Co., Ltd. 0.48
Zhu
Yehua 0.43
Huang
Wenhua 0.41
Lu
Chenglian 0.34
Zhang
Chengbao 0.32
Huang
Ye 0.27
Jiang
Fang 0.27
Other
Shareholders 61.16
Shandong
Hongqiao New Materials Co., Ltd.
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Date
of Registration: July 27, 1994
Unified
Social Credit Code:
913716006138582965
Legal
Representative: Zhang Shiping
Registered
Capital: USD 1,303,120,000
MANAGEMENT
Zhao Qianfang, Legal
Representative and Chairman
-------------------------------------------------------------------------------
Gender:
M
Nationality:
China
Age:
57
Qualification:
University
Working
experience (s):
At
present, working in SC as legal representative and chairman
Yang Guangchang, General
Manager
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Gender:
M
Nationality:
China
Age:
49
Qualification:
University
Working
experience (s):
At
present, working in SC as general manager, also working in Qingdao Lufeng New
Materials Technology Co., Ltd. and Boxing County Hongbo New Environmental
Protection Materials Co., Ltd. as legal representative
Liu Xinghai, Deputy
General Manager
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Gender:
M
Nationality:
China
Age:
37
Qualification:
University
Working
experience (s):
At
present, working in SC as deputy general manager
Xiao Xiao, Deputy General Manager
-------------------------------------------------------
Gender:
F
Nationality:
China
Age:
31
Qualification:
University
Working
experience (s):
At
present, working in SC as deputy general manager
BUSINESS
OPERATION
SC’s
registered business scope includes manufacturing and selling high precision
aluminum sheet and foil; international trade.
SC
is mainly engaged in manufacturing and selling aluminum sheet and foil.
Brand:
HONTRON
SC’s
products mainly include: aluminum plate and aluminum foil.
SC sources its materials 100% from domestic market. SC sells 60% of its products in domestic market, and 40% to the overseas market.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms
of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 305
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED
COMPANY
SC is known to have the
following subsidiaries at present,
Zouping
County Hongcheng Aluminium Technology Co., Ltd.
Qingdao
Lufeng New Materials Technology Co., Ltd.
Boxing
County Hongbo New Environmental Protection Materials Co., Ltd.
Shandong
Huijia Capital Management Co., Ltd.
PAYMENT
Overall payment appraisal:
(
) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The
appraisal serves as a reference to reveal SC's payments habits and ability to
pay. It is based on the 3 weighed
factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment records and our debt collection record
concerning SC.
Trade payment experience: SC did not provide any name of trade/service suppliers and we
have no other sources to conduct the enquiry at present.
Delinquent payment record: None in our database.
Debt collection record: No overdue amount owed by SC was placed to us for collection within
the last 6 years.
BANKING
The
bank information of SC is not filed in SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
As of Sep. 30, 2017 |
|
243,469 |
307,560 |
|
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Accounts receivable |
197,643 |
347,211 |
|
Notes receivable |
0 |
19,456 |
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Advances to suppliers |
116,853 |
26,624 |
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Other receivable |
346,896 |
5,905 |
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Inventory |
72,794 |
104,155 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
1,257 |
4,563 |
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------------------ |
------------------ |
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Current assets |
978,912 |
815,474 |
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Long-term investments |
0 |
0 |
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Fixed assets |
181,731 |
164,309 |
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Construction in progress |
0 |
42,229 |
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Intangible assets |
226,984 |
223,018 |
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Goodwill |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
100,793 |
99,494 |
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|
------------------ |
------------------ |
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Total assets |
1,488,420 |
1,344,524 |
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|
============= |
============= |
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Short-term loans |
232,000 |
45,000 |
|
Notes payable |
30,000 |
0 |
|
Accounts payable |
11,064 |
47,867 |
|
Payroll payable |
1,332 |
0 |
|
Taxes payable |
2,807 |
5,483 |
|
Interest payable |
335 |
67 |
|
Advances from clients |
1,363 |
1,588 |
|
Other payable |
1,832 |
1,371 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
280,733 |
101,376 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
280,733 |
101,376 |
|
Equities |
1,207,687 |
1,243,148 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
1,488,420 |
1,344,524 |
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|
============= |
============= |
Consolidated Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
Jan. 1, 2017 to Sep. 30, 2017 |
|
Revenue |
977,120 |
1,077,080 |
|
Cost of sales |
954,804 |
1,033,290 |
|
Business Taxes and Surcharges |
4,714 |
3,638 |
|
Sales expense |
2,168 |
1,351 |
|
Management expense |
23,036 |
12,806 |
|
Finance expense |
10,278 |
2,685 |
|
Asset impairment loss |
-32,084 |
-12,212 |
|
Investment income |
0 |
0 |
|
Non-operating income |
67 |
39 |
|
Non-operating expense |
120 |
100 |
|
Profit before tax |
14,151 |
35,461 |
|
Less: profit tax |
0 |
0 |
|
14,151 |
35,461 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Sep. 30, 2017 |
|
*Current ratio |
3.49 |
8.04 |
|
*Quick ratio |
3.23 |
7.02 |
|
*Liabilities to assets |
0.19 |
0.08 |
|
*Net profit margin (%) |
1.45 |
3.29 |
|
*Return on total assets (%) |
0.95 |
2.64 |
|
*Inventory / Revenue ×365/270 |
28 days |
27 days |
|
*Accounts receivable / Revenue ×365/270 |
74 days |
88 days |
|
*Revenue / Total assets |
0.66 |
0.80 |
|
*Cost of sales / Revenue |
0.98 |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
The
revenue of SC appears fairly good in its line.
SC’s
net profit margin is average.
SC’s
return on total assets is average.
SC’s
cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a fairly good level.
SC’s
quick ratio is maintained in a fairly good level.
The
inventory of SC appears average.
The
accounts receivable of SC appears large.
SC’s
short-term loans are in an average level.
SC’s
revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is low.
The
risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC
is considered medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.96 |
|
|
1 |
INR 90.34 |
|
Euro |
1 |
INR 80.75 |
|
CNY |
1 |
INR 10.26 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.